Moody’s rates Global Aircraft notes Ba2

Moody's Investors Service said it assigned a Ba2 rating to the $1.95 billion of five-year senior secured notes co-issued by Global Aircraft Leasing Co., Ltd. (GALC) and Global Sea Containers Two Ltd. (GSCL II).

GALC is the entity that holds Bohai Leasing Co., Ltd.'s 70% shareholder interest in commercial aircraft leasing company Avolon Holdings Ltd. GSCL II is the newly formed Bohai subsidiary and parent of Global Sea Containers Ltd. (GSCL), a global lessor of shipping containers. GALC's outlook was changed to stable from negative.

“Moody's assigned a Ba2 rating to the new senior secured notes based on the strong collateral coverage and initially weak debt service coverage of the transaction, which is associated with GALC's 70% ownership interest in competitively well-positioned and profitable aircraft leasing company Avolon and GSCL II's 100% ownership of GSCL, one of the largest lessors of sea containers globally through its Seaco and Cronos businesses,” the agency said in a press release.

The proceeds will be used to fully repay the GALC senior unsecured notes that mature in September 2024 and to pay issuance fees and expenses.

“The stable outlook reflects Moody's expectation that the debt service coverage of the new senior secured notes will be stable to improving, based on the operating strengths and prospects of Avolon and GSCL and that the collateral coverage will remain strong,” the agency said.

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